Average daily crude steel output at major steel companies over July 21-31 was at 1.91 million tonnes, down 2.5 percent compared with July 11-20, according to China's Iron & Steel Association (CISA), curbed by stepped up anti-pollution measures across the nation.

Steel inventory at mills also fell 7.45 percent over the same period to 11.44 million tonnes, CISA data showed. And blast furnace utilisation rates at steel mills across the country fell to 66.16 percent, the lowest since early April, Mysteel data showed.

The most-active construction steel rebar futures for October delivery rose 0.9 percent to 4,254 yuan ($622.75) a tonne as of GMT 0214.